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If you are looking for a more accurate method than market capitalization to determine a company's value, examining the Enterprise Value might be a great start.

Enterprise Value (EV) is the hypothetical cost of purchase for a company. Levered Free Cash Flow (LFCF) is the amount of cash available to stockholders after interest payments on debts are made. By finding the LFCF/EV ratio, we can identify the most undervalued stocks.

To create this list we started with the top 200 large market cap companies (over $10B), and narrowed down the list to those with the highest LFCF/EV ratios. The resulting 15 potentially undervalued stocks are outlined below.

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Do you think these stocks have potential for upward momentum? Use this list as a starting point for your own analysis.

1. China Life Insurance Co. Ltd. (NYSE:LFC): Life Insurance Industry. Market cap of $95.23B. Levered Free Cash Flow at 32.67B, vs Enterprise Value at 87.50B (implies a LFCF/EV ratio at 37.34%). The stock has lost 19.99% over the last year.

2. Nokia Corporation (NYSE:NOK): Communication Equipment Industry. Market cap of $30.89B. Levered Free Cash Flow at 4.64B, vs Enterprise Value at 20.52B (implies a LFCF/EV ratio at 22.61%). Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 6.71%, current ratio at 1.65, and quick ratio at 1.49. It's been a rough couple of days for the stock, losing 5.02% over the last week.

3. Time Warner Inc. (NYSE:TWX): Entertainment Industry. Market cap of $38.26B. Levered Free Cash Flow at 9.22B, vs Enterprise Value at 51.79B (implies a LFCF/EV ratio at 17.8%). The stock has gained 23.29% over the last year.

4. Honda Motor Co., Ltd. (NYSE:HMC): Auto Manufacturers Industry. Market cap of $67.11B. Levered Free Cash Flow at 11.04B, vs Enterprise Value at 67.90B (implies a LFCF/EV ratio at 16.26%). The stock has gained 19.52% over the last year.

5. Ford Motor Co. (NYSE:F): Auto Manufacturers Industry. Market cap of $55.68B. Levered Free Cash Flow at 21.72B, vs Enterprise Value at 136.15B (implies a LFCF/EV ratio at 15.95%). This is a risky stock that is significantly more volatile than the overall market (beta = 2.38). The stock has gained 33.03% over the last year.

6. General Electric Co. (NYSE:GE): Conglomerates Industry. Market cap of $202.56B. Levered Free Cash Flow at 82.69B, vs Enterprise Value at 587.08B (implies a LFCF/EV ratio at 14.08%). The stock has gained 23.23% over the last year.

7. Liberty Starz Group (LSTZA): Broadcasting Industry. Market cap of $55.21B. Levered Free Cash Flow at 353.00M, vs Enterprise Value at 2.81B (implies a LFCF/EV ratio at 12.56%). The stock has gained 48.9% over the last year.

8. AstraZeneca PLC (NYSE:AZN): Drug Manufacturers Industry. Market cap of $70.17B. Levered Free Cash Flow at 8.46B, vs Enterprise Value at 69.05B (implies a LFCF/EV ratio at 12.25%). Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 5.02%, current ratio at 1.5, and quick ratio at 1.4. The stock has gained 29.3% over the last year.

9. Canon Inc. (NYSE:CAJ): Photographic Equipment & Supplies Industry. Market cap of $59.29B. Levered Free Cash Flow at 4.98B, vs Enterprise Value at 43.58B (implies a LFCF/EV ratio at 11.43%). The stock has gained 10.52% over the last year.

10. China Mobile Limited (NYSE:CHL): Wireless Communications Industry. Market cap of $178.48B. Levered Free Cash Flow at 15.79B, vs Enterprise Value at 138.77B (implies a LFCF/EV ratio at 11.38%). Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 4.35%, current ratio at 1.26, and quick ratio at 1.24. The stock has lost 1.4% over the last year.

11. Pfizer Inc. (NYSE:PFE): Drug Manufacturers Industry. Market cap of $162.13B. Levered Free Cash Flow at 19.67B, vs Enterprise Value at 179.58B (implies a LFCF/EV ratio at 10.95. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.9%, current ratio at 2., and quick ratio at 1.71. The stock has gained 42.01% over the last year.

12. GlaxoSmithKline plc (NYSE:GSK): Drug Manufacturers Industry. Market cap of $111.33B. Levered Free Cash Flow at 12.75B, vs Enterprise Value at 122.61B (implies a LFCF/EV ratio at 10.4%). The stock has gained 37.36% over the last year.

13. Unitedhealth Group, Inc. (NYSE:UNH): Health Care Plans Industry. Market cap of $51.96B. Levered Free Cash Flow at 5.30B, vs Enterprise Value at 51.59B (implies a LFCF/EV ratio at 10.27%). The stock has gained 68.46% over the last year.

14. Merck & Co. Inc. (NYSE:MRK): Drug Manufacturers Industry. Market cap of $113.80B. Levered Free Cash Flow at 11.94B, vs Enterprise Value at 118.62B (implies a LFCF/EV ratio at 10.07%). Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 4.12%, current ratio at 1.98, and quick ratio at 1.59%). The stock has gained 20.14% over the last year.

15. NTT DOCOMO, Inc. (NYSE:DCM): Wireless Communications Industry. Market cap of $74.85B. Levered Free Cash Flow at 6.59B, vs Enterprise Value at 68.76B (implies a LFCF/EV ratio at 9.58%.) The stock has gained 17.97% over the last year.

*Levered free cashflows and enterprise values sourced from Yahoo Finance, rest of data sourced from Finviz.

Source: Top 15 Most Undervalued Large Cap Stocks by Enterprise Value